North Naples Ponzi schemer receives more than 6 years in prison

A repentant North Naples Ponzi schemer received 6 ½ years in prison Monday for bilking more than 100 investors out of several millions of dollars.

Dorian Garcia, 31, funded a lavish lifestyle with money he received from investors, who were promised large returns through an investing system Garcia devised, federal prosecutors said. Garcia, however, barely invested any of the money, and the scheme, which lasted about five years, crumbled when federal investigators cracked down on him in spring 2015.

"I take full responsibility for the damage that I cause to the victims and their families," said Garcia, who has three children between the ages of 7 months and 4 years old. "Obviously because I have children, my whole perspective is to rehabilitate and become a productive member of society."

Federal trading commission investigators now believe Garcia received about $8.5 million from 111 investors, who are still owed about $5 million. Investigators have given various dollar values for Garcia's scheme since the allegations against him first became public in April 2015, in part because new investors and bank accounts have been discovered.

Lawyers for the trading commission are in the middle of civil litigation with Garcia. They're asking for $5 million in restitution and a penalty of no less than $7.5 million. Lawyers on both sides are trying to work out an agreed-upon restitution figure.

In his criminal case, Garcia pleaded guilty to one count of wire fraud. Federal guidelines called for a sentence of 6 ½ to 9 years in prison, and prosecutors agreed to ask for the 6 ½-year sentence because Garcia has cooperated with investigators. U.S. District Judge Sheri Polster Chappell handed down the sentence.

"Seventy-eight months (in prison) for an individual who has never been in trouble before is, in my eyes, a significant period of time," Chappell said.

No victims were in court Monday, but federal prosecutor David Lazarus and Chappell referred to letters, emails and prior court testimony given by some of those duped. Lazarus quoted a statement from one victim who lost $35,000 to Garcia, saying the victim was taken advantage of "at a very vulnerable time for us." Another victim, Lazarus said, reported that she's a single mother who has been "devastated" financially as a result of Garcia.

"This is a serious crime that has had long-term and lasting impact," Lazarus said.

Investigators said Garcia charmed investors by presenting himself as a wealthy financial wunderkind, regaling interested parties over fancy dinners in Naples, Miami and Las Vegas. He promised guaranteed returns on investments, at one point pledging a return of 300 to 600 percent while trying to solicit $1 million from an individual investor.

The money, however, went into Garcia's bank accounts for personal purchases, such as luxury cars, a million-dollar North Naples home, several high-end paintings and a personal chef. Garcia falsified documents to reflect positive returns and an inflated company value, which he said reached $31 million at one point, according to court documents.

Available court records don't indicate how many victims were from the Southwest Florida region.

Garcia said he hopes to repay his victims after his release from prison. His lawyer, Doug Molloy, said Garcia has no money at the moment.

"In accepting responsibility, he has worked very diligently to make as many investors as he can whole," Molloy said.